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HomeMy WebLinkAboutMinutes - 03/27/1991 - City CouncilSPECIAL MEETING WEDNESDAY, MARCH 27, 1991 A Special Meeting of the McHenry City Council was called to order by Mayor Busse on Wednesday, March 27, 1991 at 7:30 P.M. in City Hall. At roll call the following Aldermen were present: Bolger, Donahue, Teta, Lieder, Smith, Patterson, Serritella. McClatchey arrived at 7:53 P.M. Absent: None. City Staff in attendance were: City Clerk Gilpin, City Adninistrator Peterson, Director of Public Works Batt, City Attorney Narusls arrived at 7:57 P.M., Building and Zoning Director Halik arrived at 8:37 P.M. Absent: Park Director Merkel and Chief Joyce. Also in attendance were Bill Blecke of Baxter and Woodman, Donald Meyer of Granite Builders, Roger Gerstad of Gerstad Builders, Anton Rebel, William Miller and Jerry Benes. The purpose of the meeting was to discuss and review the Water and Sewer Capital Development Fees, review the Annexation Fees, and consider Developer Donation Fees. The first matter for discussion was the Water and Sewer Capital Development Fees. The Council reviewed a November 19, 1990 memo from the Director of Public Works concerning establishment of new water and sewer Capital Development Fees. Based upon Council discussions last fall, the staff was asked to work with City Engineers Baxter b Woodman to develop Population Equivalents for both residential and non-residential use as well as to develop fees based upon the size of a tap -on. The staff was also directed to review the way the existing fee structure is administered. In addition to Capital Development Fees for Water and Sewer, the City assesses a permit fee for new connections to the City water and sewer mains. These fees are assessed to recover costs for processing the permit and for inspecting the actual tap -in to our mains. For single-family residential use, sewer permit fees are currently $250.00, and the three-quarter inch tap -in fee to residential homes for water tap -ins is $150.00 plus the actual cost of the meter. It was the recommendation of the staff that the sewer permit fees be amended to provide a single permit fee of $150.00 per connection to a City sewer main and $150.00 per connection to a City water main, plus the actual cost of a water meter as established each January 1. Capital Development Fees for water and sewer were also reviewed, and the current fees and proposed fees were outlined for detached single-family, attached single-family, and apartment units. It was pointed out by Director of Public Works Batt that the revised and amended changes in Capital Development Fees would mean a net decrease in the water and sewer operating and maintenance fund of approximately $15,000.00 annually, and a net increase for water and sewer Capital Development Fees of approximately $108,000.00 annually. City Administrator Peterson said the $15,000.00 decrease in water/sewer operating revenue would not negatively affect the operations of the water and sewer maintenance fund. Motion by Patterson, seconded by Teta, to pass an ordinance establishing Capital Development Fees for industrial, commercial, and residential use as proposed, and establishing connection fees for water/sewer as proposed. Voting Aye, Bolger, Donahue, Teta, Lieder, McClatchey, Patterson. Voting Nay: Smith, Serritella. Absent: None. Motion carried. The Mayor called for a recess at 9:05 P.M. The Meeting reconvened at 9:15 P.M., with everyone in attendance except Public Works Director Batt and Bill Blecke of Baxter 3 Woodman. March 27, 1991 Page 2 Discussion was held on establishing a policy for setting annexation fees. The payment of annexation fees by owners of property wishing to be annexed to the City are subject to negotiation. These negotiations are typically conducted by the City Council as it considers individual requests for annexation. Annexation fees are collected to help defer the cost of providing City services which may not be individually assessed, including staff reviews, map updates, new equipment needs, additional personnel needs, facility expansions, etc. The fees could also be collected and used for making improvements in City service levels to meet the needs of the entire Community. City Administrator Peterson presented a summary of annexation fees which have been assessed over the last two years by the City Council. Currently annexation fees are put into the General Fund and used for general City operations. The Mayor felt the following matters should be addressed: for what purpose should the annexation fees be used --put into the General Fund and co -mingled with other General Fund revenues, or be designated for specific purposes such as sidewalks, utilities, capital items, etc.; should the fees be paid up front or over a period of time? Motion by Lieder, seconded by Donahue, to place annexation fees in a separate account, and each year during the budgeting process, a determination will be made as to where the funds should be spent. Voting Aye: Bolger, Donahue, Lieder, Teta, Smith, McClatchey, Patterson, Serritella. Voting Nay: None. Absent None. Motion carried. Alderman Teta pointed out that the City had established a policy in August 1990 to charge no fees for industrial annexations. The Mayor and several Aldermen felt the policy should be reconsidered and a fee should be charged. Motion by Donahue, seconded by Serritella, to establish a policy setting annexation fees of $500.00 per acre as the basis for all acreage --commercial, residential and industrial. Voting Aye: Bolger, Donahue, Lieder, Teta, Smith, McClatchey, Patterson, Serritella. Voting Nay: None. Absent: None. Motion carried. Discussion then took place on the amount to charge per lot. Motion by McClatchey, seconded by Patterson, to establish a policy setting an annexation fee of $500.00 per residential unit/lot. Motion by Bolger, seconded by Serritella, to table the motion. Voting Aye: Bolger, Donahue, Smith, Serritella. Voting Nay: Teta, Lieder, McClatchey, Patterson. Absent: None. There being a tie vote, Mayor Busse cast a `Nay' vote and declared the motion did not carry. Voting on the original motion: Voting Aye: Voting Nay: Absent: Motion did not carry. McClatchey, Patterson. Bolger, Donahue, Teta, Lieder, Smith, Serritella. None. Motion by McClatchey, seconded by Patterson, to establish a policy setting an annexation fee of $500.00 per single-family residential lot. Voting Aye: Bolger, Teta, Lieder, McClatchey, Patterson. Voting Nay: Donahue, Smith, Serritella. Absent: None. Motion carried. Page 3 City Administrator Peterson was instructed to address the matter of setting annexation fees for multi -family units. Discussion was held on Developer Donations Fees for City parks. In 1977, the Council adopted the standard of obtaining 1 acre per 100 people Currently, Park Developer Donation Fees are $850.00 for a three -bedroom home, and $1,083.00 for a four -bedroom home. Currently, the City has 249.55 acres of park land, which equates to 1.54 acres per 100 people. To upgrade the Developer Donation for parks using the $30,000.00 per acre figure, Peterson suggested charging $1,275.00 as a Park Developer Donation Fee for a three -bedroom home, and $1624.00 for a four -bedroom home. Alderman Patterson suggested that possibly the formula should be changed. Instead of one acre per 100 people, the formula should be one acre per 70 people. Discussion ensued, but no action was taken. Motion by Smith, seconded by Serritella, to adjourn. Voting Aye: Bolger, Donahue, Lieder, Teta, Smith, McClatchey, Patterson, Serritella. Voting Nay: None. Absent: None. Motion carried. The Meeting adjourned at 10:40 P.M.